NYSE:QHC

Stock Analysis Report

Executive Summary

Quorum Health Corporation, together with its subsidiaries, provides hospital and outpatient healthcare services in the United States.

Snowflake

Fundamentals

Weak fundamentals or lack of information.


Similar Companies

Share Price & News

How has Quorum Health's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.4%

QHC

7.0%

US Healthcare

1.0%

US Market


1 Year Return

-71.5%

QHC

-8.8%

US Healthcare

8.0%

US Market

Return vs Industry: QHC underperformed the US Healthcare industry which returned -8.8% over the past year.

Return vs Market: QHC underperformed the US Market which returned 8% over the past year.


Shareholder returns

QHCIndustryMarket
7 Day-2.4%7.0%1.0%
30 Day-11.5%1.8%-0.07%
90 Day-16.9%-2.7%-1.0%
1 Year-71.5%-71.5%-7.3%-8.8%10.4%8.0%
3 Year-75.7%-75.7%33.7%27.7%46.2%36.7%
5 Yearn/a59.4%48.8%64.3%46.2%

Price Volatility Vs. Market

How volatile is Quorum Health's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Quorum Health undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Quorum Health is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Quorum Health has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of QHC’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Quorum Health regulatory filings.
  • Explore potentially undervalued companies in the Healthcare industry.

Future Growth

How is Quorum Health forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

105.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QHC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: QHC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: QHC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: QHC's revenue is expected to decline over the next 3 years (-11.6% per year).

High Growth Revenue: QHC's revenue is forecast to decline over the next 3 years (-11.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if QHC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Quorum Health performed over the past 5 years?

-29.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: QHC is unprofitable, and losses have increased over the past 5 years at a rate of -29.9% per year.

Accelerating Growth: Unable to compare QHC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: QHC is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (5.6%).


Return on Equity

High ROE: QHC's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: QHC is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: QHC is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Quorum Health's financial position?


Financial Position Analysis

Short Term Liabilities: QHC has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: QHC has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: QHC has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: QHC's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: QHC has a high level of physical assets or inventory.

Debt Coverage by Assets: QHC has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: QHC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: QHC has less than a year of cash runway if free cash flow continues to grow at historical rates of 34.7% each year.


Next Steps

Dividend

What is Quorum Health's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate QHC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate QHC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if QHC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if QHC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of QHC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Quorum Health's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Bob Fish (68yo)

1.4yrs

Tenure

US$4,932,718

Compensation

Mr. Robert H. Fish, also known as Bob, has been President since August 24, 2018 and Chief Executive Officer since May 21, 2018 of Quorum Health Corp. and also has been its Director since September 7, 2018. ...


CEO Compensation Analysis

Compensation vs. Market: Bob has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare Bob's compensation with company performance.


Management Age and Tenure

1.5yrs

Average Tenure

54yo

Average Age

Experienced Management: QHC's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

63yo

Average Age

Experienced Board: QHC's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$961,538,99626 Apr 19
Goldman Sachs Group, Investment Banking and Securities Investments
EntityCompany
Shares11,180,686
Max PriceUS$86.00
SellUS$20,961,65826 Apr 19
Goldman Sachs Group, Investment Banking and Securities Investments
EntityCompany
Shares7,228,158
Max PriceUS$2.90

Ownership Breakdown


Management Team

  • Mike Culotta (64yo)

    Consultant

    • Tenure: 1.5yrs
    • Compensation: US$664.47k
  • Bob Fish (68yo)

    President

    • Tenure: 1.4yrs
    • Compensation: US$4.93m
  • Alfred Lumsdaine (54yo)

    Executive VP & CFO

    • Tenure: 1.6yrs
    • Compensation: US$1.31m
  • Marty Smith (51yo)

    Executive VP & COO

    • Tenure: 0yrs
    • Compensation: US$1.16m
  • Hal McCard (57yo)

    Senior VP

    • Tenure: 0yrs
    • Compensation: US$636.90k
  • Stefan Neely

    Manager of Corporate Finance and Investor Relations

    • Tenure: 0yrs
  • Glenn Hargreaves (52yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 1.2yrs
  • Shaheed Koury (52yo)

    Senior VP

    • Tenure: 0yrs
    • Compensation: US$632.00k
  • Randy Cooper

    Senior Vice President of Operations Finance

    • Tenure: 0yrs
  • John Latina

    Senior Vice President of Operations Finance

    • Tenure: 0yrs

Board Members

  • Terry Rappuhn (62yo)

    Chair of the Board

    • Tenure: 1.6yrs
    • Compensation: US$290.92k
  • Bob Fish (68yo)

    President

    • Tenure: 1.4yrs
    • Compensation: US$4.93m
  • Alice Schroeder (62yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$179.41k
  • Barbara Paul (65yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$227.70k
  • R. Van Horn (51yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$232.70k
  • Joseph Hastings (64yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$217.70k
  • Jon Kaplan (51yo)

    Independent Non-Employee Director

    • Tenure: 1.1yrs
    • Compensation: US$150.73k
  • William Rutledge (64yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$150.73k

Company Information

Quorum Health Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Quorum Health Corporation
  • Ticker: QHC
  • Exchange: NYSE
  • Founded: 2015
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: US$40.482m
  • Shares outstanding: 32.91m
  • Website: https://www.quorumhealth.com

Number of Employees


Location

  • Quorum Health Corporation
  • 1573 Mallory Lane
  • Brentwood
  • Tennessee
  • 37027
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QHCNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2016
QH3DB (Deutsche Boerse AG)YesCommon StockDEEURApr 2016

Biography

Quorum Health Corporation, together with its subsidiaries, provides hospital and outpatient healthcare services in the United States. Its hospital and outpatient healthcare services include general and acu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:47
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.